FBT

There are two ways of accounting FBT.

1) Advance payment of FBT will be shown as Advance in Balance Sheet for an assessment year. At the year end while making provision of Fbt Keep it as liability. The " Advance Fbt" and "Provision for FBT" will be in accounts till assessment order comes.

2) Pay FBT for a particular year quarterly and show as an expenses in P& L A/c. at the year end Make Provision of FBT by debiting P&L A/c. When Final payment is due on assessment order or self assessment. Debit Provision for FBt and Credit bank account

Thanks for that reply.